The integrated insurance market is estimated to have a potential value of $ 3 trillion globally. Can the IT channel get a piece of the pie?
Companies in the IT channel are always looking for additional sources of income, but few touch the area of insurance beyond the warranties or additional offers of the providers. Are you missing an opportunity?
Estimates suggest that the integrated insurance market has a potential value of $ 3 trillion globally, due to the growth of technology insurance platforms that could allow insurance to be more profitably available to individual clients.
In the view of FCICM member Chartered Institute of Credit Management and IT channel credit expert Eddie Pacey, an integrated insurance offering could be adapted to a subset of the channel in the future.
“The way people buy equipment and insure it has changed. Companies have all kinds of insurances that cover them, and the IT sector works with really long guarantees. “
For Pacey, providers could take advantage of the availability of offering integrated insurance, of course, depending on the product. Items with a shorter lifespan, such as those laptops that have a narrow margin, may not be worth insuring as the customer may prefer to simply replace it every few years.
Thus, bundling insurance can work alongside critical services provided to end users, helping to protect clients against losses in specific assets or operations that are not yet covered by company insurance.
How to approach an integrated insurance offer
Experts seem to agree that, like integrated financing It works, although to a certain extent, integrated insurance can also be very positive for the IT sector.
However, automating the process to provide insurance as part of what customers buy will be essential for their integration to be successful just as banks, fintechs, retailers and software and hardware companies that do integrated cyberinsurance do. in your cybersecurity offering.
Insurance onboarding might be more suitable for larger technology providers
However, the practice still makes more sense at high volumes where premiums can be kept low and it can be profitable for the end customer. Therefore, the incorporation of insurance might be more suitable for larger technology providers than for clients with multiple positions.
Additionally, some experts suggest that bundled insurance is likely to become more useful to a broader range of providers over time, although we are still at a very early stage in this process today.
In addition, some point out the possibility of having some type of integrated insurance that could be combined with other commercial service type products since the insurance combined with the products can help to generate the trust that the client so badly needs.
However, it must also be taken into account that insurance is highly regulated and has suffered a series of financial crises, therefore, contracts with insurance providers they can be volatile.
According to some reports, the commercial insurer Lloyds of London expects to pay a millionaire amount in claims related to the pandemic during the first six months of 2020 alone, and the total losses of the insurance industry from COVID-19 are estimated at 107 billion euros. Dollars.
These are issues that the IT channel will have to take into account since it is unlikely that the companies in the channel will want to take out insurance themselves, which suggests that the best option might be to look for partnerships that should be studied with caution.
Initial Image | Scott Graham
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